The drive to reduce child poverty is of particular interest in southern Europe, where the subsidiary role of the State in matters of family policy has implied that programmes of public assistance to poor families with children are often meagre or not available at all. The paper examines the effect of family transfers (used broadly to include contributory family allowances, non-contributory child benefits and tax credits or allowances) on child poverty in Greece, Italy, Spain and Portugal. Using the European microsimulation model EUROMOD, the paper first assesses the distributional impact of existing family transfers and finds it is weak. The scope for policy reforms is then explored. By way of illustration, universal child benefit schemes similar to those in Britain, Denmark and Sweden are simulated. The impact of such schemes on child poverty is shown to be considerable, but their fiscal cost correspondingly substantial. The paper concludes with a discussion of key findings and policy implications.
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Paper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number
EM2/04.
Length: Date of creation: 01 Jul 2004 Date of revision: Handle: RePEc:ese:emodwp:em2/04
Note: Child poverty, social transfers, fiscal benefits, south Europe, microsimulation Contact details of provider: Postal: RAB Butler Building, University of Essex, Wivenhoe Park, Colchester, ESSEX C04 3SQ Phone: +44 (0)1206 872957 Fax: +44 (0)1206 873151 Email: Web page: http://www.iser.essex.ac.uk/research/euromod/ More information through EDIRC
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Matsaganis, Manos & Levy, Horacio & Mercader-Prats, Magda & Toso, Stefano & O’Donoghue, Cathal & Coromaldi, Manuela & Rodrigues, Carlos Farinha & Tsakloglou, Panos, 2005.
"Child Poverty and Family Transfers in Southern Europe,"
IZA Discussion Papers
1509, Institute for the Study of Labor (IZA).
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Find related papers by JEL classification: C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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